Algeria has Two Years before Consuming its Financial Reserves

Experts and former officials in Sonatrach ruled out that the oil market will be largely affected by the US decision to lift the ban on exporting crude oil, because the oil market is already saturated on one hand, and the existence of other parallel oil markets in Syria, Iraq and even Libya, warning that the continuation of the situation and prices for what they are will lead to the depletion of Algeria’s financial reserves in two years.

Expert and economic analyst, Abdelmalek Serrai, thinks that the US decision to lift the ban on the export of crude oil has negative effects on Algeria and some oil-producing countries, saying that we will be the victim of an undeclared war between the United States against Saudi Arabia and Russia, and warned of the continuation of the situation which would lead to financial reserves’ consumption of the country by 2018.

“Oil policy of Saudi Arabia broke more than 80 US oil companies for the production of oil and shale gas, and production stopped completely, so the US decision came as an attack against Saudi Arabia and Russia.”

“Prices are expected to continue at their current levels in light of the US decision, and will continue on the same way until next spring at the limits of May. Prices could recover between $ 40 and $ 50 by the next summer, especially if control will be applied on the sale of oil in the black market in Iraq and even in Libya.”

Serrai warned of the continuation of the situation that will lead to consuming the monetary and financial reserves of Algeria starting from the year 2018, as the country can absorb the shock during the current year and in 2017. 

“Recent visit of Saudi Foreign Minister to Algeria comes in the direction that the Kingdom was reviewing its oil policy and abandoned the idea of going alone in the field of oil policy, and Riyadh realized its needs Algeria technically and strategically.”

Former Sonatrach official also played down the consequences of the US decision to lift the ban on the export of crude oil, and on the price of this product in the international market. US supply is limited amid a market that is already saturated.

“Oil market’ repletion with production and offer, so if prices fell again, and in a significant way, it will not be because of the US decision to lift the ban on the export of crude oil, because the current market situation and the large abundance of production makes us afraid.”